State Fiscal Service delaying automated VAT refunding - EBA

The State Fiscal Service is delaying automated value added tax (VAT) refunds to companies, the European Business Association (EBA) has said.

"In August 2015, the EBA received a record number of claims from companies-members [international companies-leaders of the country's market, largest taxpayers] on problems with VAT refunds," EBA said.

The association said that along with positive news from the Finance Ministry and the large-scale discussion of the draft new tax reform, the issue of VAT refunding is unfortunately beyond the attention of the state.

"Legal companies, which are fully in line with the criteria for automated VAT refunding that are stipulated in the Tax Code, do not receive refunding," the report said.

The EBA said that the State Fiscal Service has initiated off-schedule documentation checks of companies which are to automatically receive VAT refunding.

"It takes large time off-scheduled checks. The appropriateness of tax checks of companies, which are fully in line with the VAT refunding criteria, is doubtful and unclear," EBA said.

The association announced a press conference devoted to the problem for September 17 with the participation of companies with foreign investment.